MWS-14

u Advanced

LVC Consulting

Reducing the Cost of Growth through Lean

A commitment to implementing Lean manufacturing has the potential to reduce costs, inventory, and improve quality. While this is significant, a greater potential exists to have Lean improvement drive sales and market share growth. With improved flexibility and extending that flexibility to the entire value chain, a company can significantly outgrow the competition. Some companies have seen two to three times the market rate of growth.

Very often the approach to managing growth is to increase capital investment, causing a decline in return on investment or assets. Profit margins decline and much of the increase in sales does not translate into higher profits. The traditional approach causes many companies to reduce risk by growing at a slower pace. The objective should be to maximize growth potential while simultaneously increasing profit margins and returns on capital.

This presentation focuses on a methodology for reducing the cost of growth – both variable costs and fixed investment costs. The process is Production Preparation Process (3P), a unique team based process applied to product and process development. It results in lower capital investment costs, time phased to match the projected growth curve for the product. It reduces risk through incremental investment decisions. It also insures that new capital equipment, production lines, plants, distribution and systems are consistent designed and purchased consistent with lean manufacturing principles rather than a batch mentality.

Multiple client case studies will be used to illustrate the application and results. The following will be discussed:

Mark Oakeson

The founder of LVC Consulting, Mark Oakeson has implemented continuous improvement programs around the globe and is a recognized expert in leading companies in their complete Lean transformations. Many of these client relationships have been in excess of ten years. He has been instrumental in developing growth strategies and the reducing the cost of growth through the implementation of applying Lean to Greenfield sites, plant expansions and consolidation strategies. He is experienced in applying Lean principles to product development and product launches. Finally, he has been a leader in leveraging production flexibility into redesigns of the extended value chain resulting in improved delivery performance, while reducing costs and total inventory.

Mark has worked extensively within all organizational levels, from senior management and union leaders to shop floor associates. He has worked extensively in the Americas, the Far East, and Europe.

Mark was a co-founder of TBM Consulting Group in 1991 and worked there until 2005. He was responsible for client development and U.S. consulting. Prior to TBM, he also worked at Productivity Consulting Group where he was responsible for conducting study missions to Japan for world wide senior executives from 1986 to 1990. As a result, he has visited over 100 Japanese plants recognized for their Lean programs. During this time, Mark was mentored by Mr. Nakao and Mr. Iwata of Shin-Gijutsu. The relationship continues today.

A graduate of the University of Michigan, with a degree in Engineering, Mark also did post-graduate work in Finance at the University of Connecticut.